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Report: 47 Percent of Detroit Property Owners Pay No Taxes

Feb. 22, 2013 12:02am Becket Adams

The Detroit News: Nearly Half of Detroits Property Owners Pay Nothing in Taxes

Shuttered and repossessed homes line the streets of a middle class neighborhood on the East side of Detroit. (Getty Images)

An estimated 47 percent of Detroit’s property owners pay no taxes, according to recent report from The Detroit News.

“Nearly half of the owners of Detroit’s 305,000 properties failed to pay their tax bills last year, exacerbating a punishing cycle of declining revenues and diminished services for a city in a financial crisis,” the report notes, citing more than 200,000 pages of tax documents.

“Some $246.5 million in taxes and fees went uncollected, about half of which was due Detroit and the rest to other entities, including Wayne County, Detroit Public Schools and the library,” the report adds.

In fact, according to The News, delinquency in the shattered city is so bad that that 77 blocks had only one owner who paid taxes in 2012.

Yes, one person paid taxes in an area covering 77 blocks.

Detroit: UAW workers protesting against GM supplier Johnson Controls Inc. (Getty Images)

Many of the people interviewed by The News said that they don’t understand why they should pay into a system that has failed to provide them with basic public services.

“Why pay taxes?” asked Fred Phillips, who owes more than $2,600 on his home. “Why should I send them taxes when they aren’t supplying services? It is sickening. … Every time I see the tax bill come, I think about the times we called and nobody came.”

Republican Gov. Rick Snyder sent a team earlier to review the city’s finances. Shocker: The team announced this week that Detroit’s problems are too big for it to fix alone.

“Any emergency manager appointed by Gov. Rick Snyder would have to grapple with a broken property tax system. The city’s share of uncollected taxes last year was $131 million — an amount equal to 12 percent of Detroit’s general fund budget,” The News notes.

Here’s what they found after conducting a four-month analysis of the city’s tax problem:

Detroit has the highest property taxes among big cities nationwide and relies on assessments that are seriously inflated. Many houses are assessed at more than 10 times their market price, according to new research from two Michigan professors.

Detroit relies on a shrinking sliver of businesses and neighborhoods to pay the bulk of the bills. The three casinos, General Motors Corp., DTE Energy, Chrysler Group LLC and Marathon Petroleum Corp. paid 19 percent of collected property taxes. Five city neighborhoods, most of them downtown and along the river, paid 15 percent of the city’s taxes and represent only 2 percent of the city’s total parcels. In all, only 41 percent of the city’s parcels produced tax revenues last year because of delinquencies and a large number of tax-exempt land.

Detroit’s delinquencies are so pervasive that some owners have been allowed to keep their property even if they don’t pay taxes. Wayne County treasury officials are so overwhelmed by foreclosures that they ignored about 40,000 delinquent Detroit properties that should have been seized last year and said they will look the other way on about 36,000 this year.

The News quotes Lou Schimmel, Pontiac’s emergency financial manager, as saying Detroit needs to sort out its tax issues immediately.

“It’s broken,” he said. “It has to be fixed. You need the revenue.”

“It’s just plain simple. Your revenues are falling so fast you can’t afford to provide basic services,” he adds.

Final Thought: “Nearly 75 percent of voters in Wayne County, which includes Detroit, voted for Obama on Nov. 6,” FOX 2 Detroit notes.

So much for that “governm ent bacon.”

–

Follow Becket Adams (@BecketAdams) on Twitter

Featured images Getty Images. Click here to read The News’ shocking report.

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Comments (183)

ltdan
Posted on February 22, 2013 at 2:09am
Hummmm! So there was some truth to Romney’s comment that there are 47% that would never vote for him because they don’t pay taxes and rely on the gov’t. 47% coming to a neighborhood near you..

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sparkyrules
Posted on February 22, 2013 at 2:01am
Drive down Interstate1-69,between Flint and Lansing Michigan.The DOT is replacing perfectly good road POLES.East and West.Just the poles……?They are perfectly FINE as ARE! AS IS.
These Road Builders Unions seem to think that the public are stupid.I’m sorry, but the ‘infrastructure’ money NEEDS AUDITED,just like anything else.
I’ll be god damned if we just say OKAY,raise our taxes for better roads.NO,I WANT TO SEE WHERE THE BUCKAGE goes First!

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- Ben__Franklin
  Posted on February 22, 2013 at 7:35am
  Those are “GREEN” poles made in China.
  
  Report this comment
- vadale
  Posted on February 22, 2013 at 8:38am
  Welcome to total dem control.
  
  Report this comment
- TheOldeCrow
  Posted on February 22, 2013 at 8:51am
  ….and you, personally have stopped off at each and every one and done a professional-type inspection as-to corrosion? Especially at the lower regions of said poles?
  For your future info and mental [such as it is] update, the freaking bases/connecting anchors are corroded and are deemed unsafe. If even one of these suckers broke off and dropped onto a car or blocked I-69, and was impacted, and you were an affected motorist, what would be your very next step?
  Why, you would sue everyone you could find and you know it.
  It’s called pre-emptive maintenance and it costs far less than ‘Fixing Things” in a court of law.
  Oh, by the way, MDOT issued a statewide advisory that this was going to be done a few weeks ago.
  So, where were you when this NewsFlash was issued ? Looking at some shiny object?
  
  Report this comment
- dnewton
  Posted on February 22, 2013 at 9:52am
  Infrastructure spending, on roads anyway, was doomed in the beginning because of the limitations placed on where the money could be spent. The targeted areas were suppose to be economically under-performing based on a percentage of per capita income. The problem with this is that it fails to put the money where the wear and tear happens. It also tends to be in places where the traffic is relatively low. This misallocation of resources sounds kind and generous but it produces an eventual opposite effect by ignoring the areas of greatest transportation need. The bidding system assures that the people who actually get the work could be an out-of-state or out of county company and thus provide little benefit to local people who are really hurting financially.
  
  Report this comment
- sparkyrules
  Posted on February 22, 2013 at 11:18am
  Everybody take a look at TheOldeCrow! He works for a road bulider union.
  
  You better know it ! Those poles are just FINE.I drive for a liviing everyday.I see them UP CLOSE,everyday.Thers is NO Corrosion,BUD.They look like BRAND NEW.
  All it is screwing the Taxpayer to keep overpaid Union jobs
  
  Report this comment
- WarMunger_Al
  Posted on February 22, 2013 at 12:18pm
  the poles are fine, but the lights don’t work because the natives have stripped the copper wire for drug money.
  
  Report this comment
- VTDave
  Posted on February 22, 2013 at 1:58pm
  I live in Vermont and even with ther heavy road salt the posts are just fine here. I, too, call BS on the corrosion. The posts are heavily galvanized and even after decades of road salt are still in decent shape.
  
  Report this comment
- dodgedart1966
  Posted on February 22, 2013 at 2:30pm
  Interstate 495, near north central Massachusetts, has been paved 3 times since I moved to the area in 2005. THREE TIMES IN EIGHT YEARS. I don’t doubt your story of replacing poles that are still good.
  
  Report this comment
watashbuddyfriend
Posted on February 22, 2013 at 1:51am
Goes to show you what can happen when one is raised up dependent on the Fed to feed, and shelter them!

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- naughtycal
  Posted on February 22, 2013 at 8:09am
  They must have never learned that a government that can provide everything for its serfs can take away everything as well. That’s the reason self reliance and self responsibility are the cornerstone of being a REAL American. Not just a person born in America but true to heart American. Hell I’ve met dozens of immigrants from south America who came here the right way paid their dues,studied their test passed and became American THAT ARE MORE AMERICAN THAN THE MAN SITTING IN THE WHITE HOUSE AND MOST OF HIS COHORTS
  
  Report this comment
- Ridesa57
  Posted on February 22, 2013 at 1:42pm
  Send them more pigs and teach them how to make their own bacon.
  
  Report this comment
donttreadonryan
Posted on February 22, 2013 at 1:46am
@pickup he is being ironic. Sense of humor does us all well.

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Beachmastermax
Posted on February 22, 2013 at 1:46am
Let’s see, if I don’t pay my inflated taxes, the authorities will do nothing. What should I do? Decisions, decisions?

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- Walkabout
  Posted on February 22, 2013 at 7:55am
  I would pay the taxes if I had a job.
  
  Simply put enforcement of the law is uneven. If I didn’t pay the taxes like almost 50% of the people did, then the District attorney or others would start enforcement at my doorstep 1st.
  
  If people paid their taxes, maybe Detroit would have 50% to 100% more revenue and not be nearly as broke of not broke at all.
  
  That still leaves crappy government services & a bloated workforce. Well the citizens minority or not have to do something beside voting for Santa Clause, Obama & the Democrats.
  
  Report this comment
KickinBack
Posted on February 22, 2013 at 1:44am
Welcome to Michigan folks! Where the big cities run the politics of the State!

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- Zipit
  Posted on February 22, 2013 at 7:43am
  TRUE, in most states, Kicken! True in most states………
  
  Report this comment
justtrythinking
Posted on February 22, 2013 at 1:38am
Hmmm, that figure is very similar to the percentage of Americans who don’t pay any income taxes. Does that mean America is going to resemble Detroit one day?

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- johnpaulkuchtajr
  Posted on February 22, 2013 at 5:52am
  Bingo!
  
  Report this comment
- bharris0
  Posted on February 22, 2013 at 5:59am
  At the rate things are going, an absolute YES would be in order.
  This is the promise of socialism, communism and progressivism.
  This is what Obama and his minions want to do to the rest of America and the entire world.
  Welcome to Amerika, home of the enslaved, the poor and the stupid.
  
  Report this comment
- vadale
  Posted on February 22, 2013 at 8:43am
  Go to your county tax records and notice all of the lowered assessments for black farmers and black land owners…the dems are pushing and nudging us to rebel…if you bring it you are called a racist…so what do we do?
  
  Report this comment
- rEt_fiELdoP
  Posted on February 22, 2013 at 9:42am
  If I were a betting man (aside from my abilities to ensure a life commensurate with my skill set), I’d bet there just could be “regions” that might be “set aside” by choice whereas the way the regions choose to operate it’s brand of policies WILL CERTAINLY make being placed on a “No Fly Zone” by the government a sure thing.
  
  For example, since South Dakota is isolated from national politics and the people certainly do not support this administration’s direction in just about anything, is it possible South Dakota could become a region for patriots with similiar ideology? Same could be said about Texas (as it already is being discussed). On the flip, same can be said about places like Colorado, California, Washington…
  
  My point: If I were a betting person, I’d be willing to state for the record that in the future, liberals will reside in one of several “regions” and partake of that philosophical machine and conservatives will reside in other “regions” and live with different politics as the governing machine… just say’n.
  
  Report this comment
pickup1988
Posted on February 22, 2013 at 1:35am
Learn how to speak English you moron. Why would people pay taxes for services that aren’t provided?

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hjablo
Posted on February 22, 2013 at 1:10am
California is next and soon!.

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sparkyrules
Posted on February 22, 2013 at 12:57am
Reset,rebuild.Just like anything else.Detroit is no different.Unions will learn to do with less.

Except the Road Builders Unions..they think ‘infrastructure’ has never been AUDITED..it NEEDS audited.

Replacing perfectly good road signs….

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Bill Wallace
Posted on February 22, 2013 at 12:44am
Progressivism in action.

They vote for a progressive, who wants to spend spend spend, all on non-essentials.
They use essentials as a scare tactic. Cuts are always to essentials.
People get angry, refuse to pay taxes.
Prevents essentials and the other perks from being funded.

And then they blame a conservative.

At some point, you walk away and tell them, “THIS is what YOU voted for…live in filth.”

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- vadale
  Posted on February 22, 2013 at 8:51am
  Yep, they blame the conservative, however, this place has been run by dems my entire life. I’m 53…we don’t have a race problem…we have a liberalism problem.
  
  Report this comment
- shorelineliz
  Posted on February 22, 2013 at 9:19am
  isn’t it just whitey fault? I mean the GOP?
  
  Report this comment
Maxim Crux
Posted on February 22, 2013 at 12:41am
Just think of all the guns, food and bibles you can buy with that tax money. Will get more mileage out of that than the social security that you will never get

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MDECKER
Posted on February 22, 2013 at 12:40am
Flush it down the toilet, along with a couple other places I can think of. The Unons want it, let em have it.

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sparkyrules
Posted on February 22, 2013 at 12:37am
Michigan is one of the greatest States in the Union.And so is Indiana.Its too bad we’re surrounded by retarded States like Illincrap and Ohio.

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- Pillar of Fire
  Posted on February 22, 2013 at 5:41am
  At the very least, Illinois & Ohio are trying to work on their budget…keeping the wolf at bay. Michigan invited the wolves in, offered them bed and breakfast & everything else. Guess what?!?!?! The wolves took it, rule over & own that war zone. Suggestion: maybe Agenda 21 could help? Naaaa…This is Agenda 21 in action. No people, no taxes, no money to ruin city, move along. Nothing to see here.
  
  Report this comment
- WarMunger_Al
  Posted on February 22, 2013 at 12:24pm
  The western side and UP are great, the east side is a liberal cesspool that needs a serious purging in order to allow Michigan to be considered “great”.
  
  Report this comment
RIDEMODELS
Posted on February 22, 2013 at 12:32am
Eva Longoria waves queen like from her milti-million dollar balcony…..Now thats rich.

All I see is the Corvette and maybe Cadillac styling at this point…….Stick a fork in GM and hire me as the next design guru(mid engine six cylinder), or watch Detroit go up in flames. I dont know of one person that can afford a Camaro and no one I know will ever buy a Volt(with government supplied money)….The ship, she is sinking.!!!

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UNALIEN
Posted on February 22, 2013 at 12:31am
Now that is an Obamanation

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- UNALIEN
  Posted on February 22, 2013 at 12:41am
  The American Republic will endure until the day Fascists discovers that it can bribe the public with the public’s money.
  UNALIEN
  
  Report this comment
thegreatcarnac
Posted on February 22, 2013 at 12:28am
The people of detroit have stumbled onto something. What if millions upon millions of Americans refused to pay taxes. Suppose we just refused and even had the nerve to keep the IRS at bay when they came to make an example out of someone. We have ‘taxation without representation’ anyway. We are in the same position we were in 1776. Our represenatives represent special interests and not the citizens. They are paid off and in 1776 we had none either. The throne of England paid more attention to our needs than Washingtod d.c. does and we rebelled against them anyway.

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- DADDYWOREAWHITEHAT
  Posted on February 22, 2013 at 1:12am
  Mmmmm…. We need to stop feeding the pig.
  
  Report this comment
- donttreadonryan
  Posted on February 22, 2013 at 1:48am
  That would require tar and feathering… Uhhhh.
  
  Report this comment
- dnewton
  Posted on February 22, 2013 at 10:10am
  The progressive income tax may maximize the intake to the government but it also creates a large difference between citizens with respect to what they get in services versus what they pay for services. It is like going to the bakery and getting a dozen donuts but when you get home, there are only ten or eleven in the box. You paid more per unit than your neighbor based on some kind of social justice calculation. Eventually you would like to stop getting these expensive pastries but cant because the law forces you to buy them. The value of these donuts declines as the forced purchase increases unless you are getting free donuts.
  
  Report this comment
13th Imam
Posted on February 22, 2013 at 12:27am
Detroit

Obama’s Model American City DEMOCRATS Made it

One large Cart, Filled with union DEMOCRATS, Takers, pulled by a few used to be evil rich

Detroit way ahead of Americas Time

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- RIDEMODELS
  Posted on February 22, 2013 at 12:42am
  Great comment…Well said.
  
  Report this comment
- UNALIEN
  Posted on February 22, 2013 at 1:16am
  it is Bushs fault, Capitalism, Racism, Human caused Global Warming, guns, the wealthy, the Jewish conspiracy, mormons, Christians, not enough debt, the Family, 50′s sitcoms war on minorities, lack of contraception, fossil fuels, critical thinking, intolerance, the Tea Party, salt, heterosexuality, morals, styrofoam, fracking, virtue, individual responsibility, large soda, gender distinction, talk radio, too little monetary stimulus, the 1%, gold, the two wars, low taxes, colonialism, private sector greed, oil drilling, war on women, hate, lack of regulation..FOX news, the Koch brothers, unicorns, America
  
  did I miss any
  
  Report this comment
- donttreadonryan
  Posted on February 22, 2013 at 1:50am
  @Unalien. I agree with everything you say and what your point is. But Bush did provide us with CAIR. I don’t blame him for all but I do give him full credit for that awesome organization.
  
  Report this comment
- FstEti
  Posted on February 22, 2013 at 2:41am
  UNALIEN, this may be part of the war on women, but, you may have overlooked the insistence of allowing babies to be born. I mean, sometimes it’s just so damned inconvenient, ya know?
  
  Report this comment
- marybethelizabeth
  Posted on February 22, 2013 at 7:36am
  Glenn Beck and all the other 5th column movements are popular because they simplify the blame
  for those with short attention spans.
  Doesn’t matter what it is
  
  The Commies did it.
  
  Report this comment
- Zipit
  Posted on February 22, 2013 at 7:56am
  Well MaryBeth, for those who’s existence, (like yourself), is spent in a state of delirium, there’s such a thing as what’s called, “Occam’s razor”! In a nutshell, “Occam\’s Razor is a line of reasoning that says the simplest answer is often correct”!
  
  SO Mary Beth, If the shoe fits, wear it! Commie!!!!!!
  
  Report this comment
- Your_Senile
  Posted on February 22, 2013 at 8:23am
  This is what you should know
  
  Mary is on the clock
  
  it is so
  
  Your Senile
  
  Report this comment
- UNALIEN
  Posted on February 22, 2013 at 8:29am
  MARYBETHELIZABETH
  
  i think I figured out who you are,,,, a Middle School Principal 70′s hippie leftist leftover who hates authority,,, the problem is that you have been played, Fascism comes from Statism and Collectivism is Statism, you have adopted a suicidal ideology,, and you can’t even see it… all the problems that you point out have come form the Government intervention in the economy, culture or freedoms of individuals. so, your engage is confirmation bias, you have become a drone, unable to think critically and independently and your Collectivist ideology has become your faith, a pseudo-religion form which your self worth is dependent, You have been brainwashed. Collectivism is imposed through deception and propaganda, it is not chosen by the rational.
  
  Report this comment
- marybethelizabeth
  Posted on February 22, 2013 at 8:59am
  Unalien you make stuff up consider a picture of a straw man for you profile.
  Statism doesn’t exist. It’s an academic construct.
  If you are trying to say the only difference between fascists and communists is the color of their shirts then say that,
  don’t make up a bunch of categories to assign to people that don’t really apply upon close inspection.
  Keep deluding yourself
  
  and tell me again how the trains ran on time in mid 20th century Italy
  
  Report this comment
- UNALIEN
  Posted on February 22, 2013 at 9:22am
  MARYBETHELIZABETH
  
  Liz Beth, can I call you Liz Beth, you are an ideologue, your self worth is perpetuated and satiated by an adherence to that collective ideology. You are not a critical thinker, you are not an individual, you are in a cult,, Modern Liberalism Is fascism, a suicidal ideology.. your hateful rhetoric and intolerance for other views proves it. YOU are the Fascist, you claim to be against. Don’t take my word, do some research and think about it, you can be free, but you must think as an individual.
  
  Report this comment
- marybethelizabeth
  Posted on February 22, 2013 at 11:06am
  Ozcams razor doesn’t make things true that aren’t.
  
  Made things up again unalien. Why do you do that? Modern Liberalism? come on.
  
  Glenn Beck isn’t for individual freedom. He is the fascist.
  
  And Mr. Beck said the US should align with the Chinese and Russians.
  
  But don’t let facts get in the way.
  
  Report this comment
- UNALIEN
  Posted on February 22, 2013 at 11:34am
  MARYBETHELIZABETH
  
  liz beth, you are so obsessed with Beck that you fail to recognize that you are the Fascist, Modern Liberalism is the opposite of Classic Liberalism..
  
  Modern Liberalism is an ideology
  Modern Liberalism is illiberal
  Modern Liberalism is intolerant of nonconformist
  Modern Liberalism is confirmation bias
  Modern Liberalism is elitism
  Modern Liberalism is indoctrination
  Modern Liberalism is contextually indiscriminate thought
  Modern Liberalism is destructive of the individual
  Modern Liberalism is psychological dependency
  Modern Liberalism is brainwashing
  Modern Liberalism is imposed by cultural manipulation
  Modern Liberalism is subversion of reason and logic
  Modern Liberalism is arrested intellectual development
  Modern Liberalism is enslavement
  Modern Liberalism is demoralization
  Modern Liberalism is the defence of a shared ideology
  Modern Liberalism is divisive
  Modern Liberalism is fatal to a society
  Modern Liberalism is collectivism
  Modern Liberalism is a cult
  Modern Liberalism is a lie
  Modern Liberalism is NEOMARXISM
  
  Report this comment
Zeke48
Posted on February 22, 2013 at 12:27am
There’s nothing more to say. It was stated that 75% voted for President Ovomit. What more do you need to know about what is wrong with this city.

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right-wing-waco
Posted on February 22, 2013 at 12:23am
Yep, looks like the economy is picking up.

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- RIDEMODELS
  Posted on February 22, 2013 at 12:41am
  I would rather be a conservative nut job, than a liberal with no nuts and no job…..The Country…The End.
  
  Report this comment
Xanderson
Posted on February 22, 2013 at 12:23am
I could cry for the state of my childhood! I grew up in a Detroit suburb and it was a fantastic place to live. What do people need to see to convince them that the Democrat policies are destroying once thriving cities? It is my fervent hope that I will get to see Detroit re-emerge as a strong American city.

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- sparkyrules
  Posted on February 22, 2013 at 12:31am
  Back at ya,thats for sure.
  
  Report this comment
- DADDYWOREAWHITEHAT
  Posted on February 22, 2013 at 1:16am
  Have you tried to convince your fellow city dwellers because they continue to vote for the same failed policies?
  
  Report this comment
Conservative2
Posted on February 22, 2013 at 12:22am
Coming to a City near you soon!

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- curmudgeon60
  Posted on February 22, 2013 at 5:18am
  It’s already in a city near me! BENTON HARBOR MI. The people and the liberals had a fit when they got the EFM-fought him all the way-the second one is now in place we’ll see how long he lasts and his accomplishments with all the section 8 and a very small amount that pay taxes-mostly welfare recipients who voted more than once ha for obama. The more you give the more they want! Meh.
  
  Report this comment
sparkyrules
Posted on February 22, 2013 at 12:21am
We’ll hold our own up here in Michigan.Do what we have to do,including a EFM.Governor Rick Snyder does his best,as a moderate,but he does good so far.So far.

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- Beachmastermax
  Posted on February 22, 2013 at 1:50am
  Then the State will bail them out? Can they start paving their streets with gold now?
  
  Report this comment
mtsnj
Posted on February 22, 2013 at 12:15am
Wow that one person sure feels like a dumb ass.. If congress won’t defund the presidents agenda, we could always stop sending them money also. Then the king would really be without clothes.

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Darmok and Jalad at Tanagra
Posted on February 22, 2013 at 12:08am
What is the tax on a worthless house, or one that will sell for $1?

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- FeliciaJewel
  Posted on February 22, 2013 at 12:24am
  I would not pay a dollar for some of these home, matter of fact I think someone would have to pay me to live in one of those houses. I live outside the Detroit area and do not want any part of that city. I used to go to the car show every year, concerts, 4th of July, and have been to a casino or two, I will not go anymore. NEVER AGAIN
  
  Report this comment

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